SBI’s Annuity Deposit Scheme: When working individuals retire, they receive a large amount of money. However, the challenge lies in managing a steady income.
In such a scenario, SBI’s Annuity Deposit Scheme can prove to be extremely beneficial. This scheme requires you to deposit a lump sum amount. In return, you can enjoy a regular income in the form of interest. Allow us to explain this scheme in detail.
Guaranteed Regular Income for 3 to 10 Years
As per the details provided on SBI’s official website, the Annuity Deposit Scheme offers individuals the opportunity to secure a regular income for a period ranging from 3 to 10 years. Under this scheme, you can deposit money for 36, 60, 84, or 120 months. It is essential to deposit an amount that ensures a minimum monthly payout of Rs 1000 for the chosen duration. There is no upper limit on the deposit amount.
How Much Interest is Expected
The interest rate plays a crucial role in determining the amount received as regular income. The interest rate offered in this scheme is higher than that of a regular savings account. It is the same interest rate applicable to the bank’s Fixed Deposit (FD) scheme. The interest rate prevailing at the time of opening the account will remain constant throughout the duration of the scheme.
Flexibility for Premature Withdrawal
The annuity deposit scheme also allows for premature withdrawals. In case of an emergency, you can withdraw a maximum of Rs 15 lakh from any individual account. Any amount exceeding 15 lakhs will remain deposited, and in return, you will receive monthly installments until the specified time. The same penalty rules that apply to Fixed Deposits (FDs) are also applicable here. However, in the unfortunate event of the account holder’s demise, the nominee can withdraw the entire amount.
Avail Up to 75% Overdraft Facility
The SBI’s annuity deposit scheme offers great flexibility during times of need. You can avail a loan or overdraft facility if required, up to 75% of the account balance. Once the loan is taken, the annuity payments will be credited to the loan account. Additionally, a universal passbook is issued to the customers under this scheme. This convenient banking facility is available at all SBI branches.